Preparedness for the euro among enterprises in Slovenia

Transcription

1 Flash EB N o 95 Survey among Enterprises in Slov enia Flash Eurobarometer European Commission Preparedness for the euro among enterprises in Slovenia Summary Fieldwork: Publication: December 2006 Flash Eurobarometer 95 The Gallup Organization This survey was reques ted by DG ECFIN-R-4: External Communication and coordinated by Directorate General Communication This document does not represent the point of v iew of the European Commiss Summary ion. Report, page The interpretations and opinions contained in it are solely those of the authors.

2 Flash EB N o 95 Survey among Enterprises in Slov enia Flash EB Series #95 Preparedness for the euro among enterprises in Slovenia Conducted by upon the request of the DG ECFIN-R-4: External Communication Survey organised and managed by the Eurobarometer Team of Directorate-General Communication This document does not represent the point of view of the European Commission. The interpretations and opinions contained in it are solely those of the authors. THE GALLUP ORGANIZATION page 2

3 Flash EB N o 95 Survey among Enterprises in Slov enia Introduction The objective of the survey was to study the progress of the preparations for the introduction of the euro among businesses in Slovenia. The main themes in the survey were the followings: general information on the enterprises before the introduction of the euro the adaptation of computer systems of enterprises some cash related questions: supplying the enterprises with euro coins and banknotes changeover price policy information about the changeover. The sample of 373 enterprises consisted of 38 enterprises in the cash-intensive sectors of G and H (trade and hotel sector) of which 29 enterprises with at least 50 employees were interviewed. Besides, 55 medium and large enterprises in the sectors C to K (excl. G and H as well as the banking sector) with at least 50 employees were interviewed. The survey was carried out via telephone, using WebCATI (web-based computer aided telephone interviewing). The survey s fieldwork was carried out between 7 and 2. The sample lists were developed by Slovenian partner using local statistical data sources (IPIS). Sampling was made according to two stratification criteria: the size of the company and the activity sectors, randomly. The total sample was distributed between these sampling "cells" in a way that does not follow the actual distribution of businesses within the coverage zone: larger businesses were intentionally oversampled in order to get meaningful results for each sample segment. During data processing, the sample was not weighted because of the small number of enterprises in a sectors and the soft employee size criteria. The person interviewed in each company was a "CEO" or branch manager, Euro-coordinator or - Head of Finance and/or Administration The interviewers checked the identity of this person as well as the accuracy of the enterprise sampling characteristics, as delivered by sample list, namely: the number of employees. Summary Report, page 3

4 Flash EB N o 95 Survey among Enterprises in Slov enia The changeover to the euro poses a massive challenge to enterprises, but the Slovenian business community tends to perceive its effects to be more on the advantageous side. Half of the surveyed companies stated that they do not see the euro changeover as directly affecting them (either positively or negatively) in the medium to long term (50%). One tenth of the companies interviewed could not decide or did not want to answer this question (0%). Looking at the enterprises anticipating a direct impact by the changeover, only 8% expect negative effects, while 33% see positive consequences in the medium to long term. Among the latter, 29% even expect a very positive impact of the euro on their company in the medium to long term. Consequences of the euro changeover for the enterprise in the medium and long term GALLU P No consequences; 5 0 Positive consequences; 29 Negative consequences ; 7 Very negativ e consequences; DK / NA; 0 Very positive consequences; 4 Q5. Which consequences w ill the introduction of the euro have for your enterprise in the medium to long term? Preparations The majority of companies commenced preparations for the euro changeover only in 2006; the largest segment did so in the first half of 2006 (4%), and a third in the second half of the year (33%). Barely a fifth of the surveyed companies mentioned that they started preparations for the changeover in 2005 or earlier (9%). 8% of the companies have not yet made any preparations. Prepare the enterprise for the changeover to the euro In 2005 or earlier First half of 2006 Second half of 2006 No preparations so far GAL LUP Q. When have you started to prepare your enterprise for the changeover to the euro? % al l enterprises A large majority of respondents mentioned that they have applied or used the following two preparatory steps: defining the necessary computer adaptation, and informing the staff. 87% of the companies have already defined the necessary computer applications, and 86% have informed the staff. More than half of the company managers said that they have evaluated the necessary training needs (53%). A comparatively lower proportion, 37%, said that they had identified the impact of the changeover in the different areas of their enterprise. page 4

5 Flash EB N o 95 Survey among Enterprises in Slov enia Ways of preparation for the euro changeover Yes No DK / NA Defined the necessary computer adaptation Informed th e st aff 86 4 Evaluated the training needs Ident ified t he impact in th e d ifferent areas of the ent erp rise Source: Nov ember 2006 GA LLU P Q 2. A s rega rd s the c han geover to th e eu r o, h ave yo u? % a ll e nterprises The vast majority of companies (74%) have not assigned the task of coordinating and supervising the changeover preparations to a Euro-coordinator, or in general a person specifically dealing with the internal preparations. Only about one quarter of the companies surveyed indicated to have done so (26%). One tenth (%) of these Euro-coordinators were appointed in the first half of 2006, while another tenth (2%) in the second half of Barely 3% said that they appointed such coordinators in 2005 or earlier. Appointing a Euro-coordinator who coordinates the preparations to the euro changeover Yes, in 2005 or earlier 3 Yes, in first half of 2006 Yes, in second half of Yes, don't know when No Euro-coordinator Q3. Did you appoint a "Euro-coordinator", a "Euro Project Manager" or in general a person in charge of coordinating your enterprise's changeover preparations? Q4. When did you appoint the "Euro-coordinator", the "Euro Project Manager" or in general the person in charge of coordinating your enterprise's changeover preparations? Summary Report, page 5

6 Flash EB N o 95 Survey among Enterprises in Slov enia Adaptation of the computer system to the introduction of the euro In preparation for the introduction of the euro, the majority of companies use outsourced IT/software companies (68%) to adapt their computer systems. Only a tenth of the companies claimed that they would accomplish the computer system adaptation inhouse (%). One-fifth of the companies said that they intend to adapt their computer system using both in-house capacities and outside firms (2%). Ways of adaptation of the computer systems with respect to the introduction of the euro Adaptation by own staff GAL LUP Outsourcing to IT/software companies Mix of both DK / NA Q6. As regards the adaptation of your com puter system s with respect to the introduction of the euro, how do you proceed? % al l enterprises Company managers were asked to evaluate their company s different computer systems (accounting, invoicing, payroll systems) in terms of their preparedness for the changeover. Almost all respondents (97-99%) expect each of these systems to be prepared for the changeover. Readiness of different systems for switching to the euro on January 2007 Accounting system 2 Invoicing sy stem Payroll syste m Ex pec t to be rea dy Do not 30 exp ect to b e rea dy DK / NA 97 Source: Nov ember 2006 GA LLU P Q 7. /Q 9/Q. D o you expec t yo ur a cc ou n ti n g / in voi c in g / p ayro ll s ystem to b e r ead y for sw itc hi ng to the eu ro o n Ja nu ar y ? % all ent erprise s Only 2% of company managers stated that their accounting system will not be prepared for the changeover to the euro (because external IT/software services are provided too late by their contractor or because the external accountant will not be ready). % believed that their invoicing system and % stated that their payroll system will not be prepared because of delays on the part of external contractors ( external IT/software services are provided too late by our contractor ). page 6

7 Flash EB N o 95 Survey among Enterprises in Slov enia Cash issues Banks are expected to supply enterprises, notably those dealing with cash in their customer relations, with euro coins and banknotes before the adoption of the euro. Of the companies engaged in retail trade or direct financial transactions (those who have direct financial relations involving cash operations with customers) 69% mentioned that they expect their bank to supply them with euro banknotes before January 2007, while 74% said the same in relation to euro coins. 7% of the managers from companies engaged in retail trade or direct financial transactions did not think that their bank would supply them with euro banknotes, and 3% believed that it would not supply them with euro coins, before January Expectation regarding the supply with euro coins and banknotes before January 2007 by the bank b an k n ot es c oi n s Yes N o DK / NA Among those enterprises which expect to be supplied with euro cash before GAL LUP Q4. Do you expect to be supplied with euro coins before January 2007 by your bank? Q7. Do you expect to be supplied with euro banknotes before January 2007 by your bank? Base: only those who are retail en terprise or have direct financial relations involving cash operations with customers January 2007, the majority expects this to happen between 6 and 22 December 2006 (36% and 39% for coins and banknotes, respectively). A relatively high percentage (more than one out of four enterprises) expects their bank to supply them with euro coins and banknotes between the 9 and 5 December 2006 (27% and 30%). About one fifth of the enterprises (2%) believes that this will take place only after 23 December 2006 for euro banknotes (3% for euro coins). Being supplied with euro coins and euro banknotes by the bank of the enterprise before. January 2007 Euro coins Euro banknotes -8. Dec Dec not asked 9-5. Dec Dec Dec Dec on 23 Dec or later 3 on 23 Dec or later 2 don't know when 9 don't know when Q5. /Q8. When do you expect to be supplied with euro coins / euro banknotes / by your bank? Base: among those who expect to be supplied with euro coins/ banknotes before. January 2007 Summary Report, page 7

8 Flash EB N o 95 Survey among Enterprises in Slov enia The managers of companies engaged in retail trade or direct financial transactions who do not expect their enterprise to receive euro cash before January 2007 were also asked for the reasons for not being supplied with euro cash early on. Most of them underlined that they saw no need for this (70% mentioned this reason in relation to euro coins and 63% for banknotes); their lack of awareness of this possibility (26% and 4%, respectively). Costs do not seem to represent a major obstacle: only 5% and % respectively expressed their unwillingness to pay for the early supply. An even smaller number of these company managers mentioned that they will not be supplied with euro coins and banknotes because of security and storage problems ( and 2 companies, respectively). Reasons of NOT BEING supplied with euro coins and euro banknotes by the bank of the enterprise before. January 2007 Euro coins (N=27) Euro banknotes (N =35) security or storage problems 4 security or storage problems 6 don't want to pay for it 5 don't want to pay for it not aware of the possibility of it 26 not aware of the possibility of it 4 no need to receive it before 0 /0 / no need to receive it before 0 /0 / other reason 30 other reason Q6. /Q9. Why will you not be supplied with euro coins /euro banknotes before January 2007? Base: among those who do not expect to be supplied with euro coins/ banknotes before. January 2007 We also asked retail enterprises and companies with direct financial relations (involving cash operations with consumers) whether they plan to use euro cash, tolar cash or a mix of both as from January 2007 for giving change. Giving change in euro or tolar after January 2007 Fully switch to euro: DK / NA ; 5 Give change in t olar; On 5 January 2007 at the lat est Between 6-0. Jan Giv e chan ge in euro; 70 Give change mix ed; 24 Between - 4. Jan Later 2 54 Do not know when 5 Q20. How do you intend to give change as from January 2007? Base: only those w ho are retail enterprise or have direct financial relations involving cash operations with customers Q2. When do you intend to fully switch to giving change exclusively in euro? Base: only those who intend to give back in tolar or mixed page 8

9 Flash EB N o 95 Survey among Enterprises in Slov enia After January 2007, the vast majority of these companies intend to give change in euro (7%), and a quarter plan to give change in tolar or a mix of both (25%). Of the latter companies, the majority intend to switch to giving change only in euro between and 4 January 2007 (54%). 29% of these companies will switch to giving change in euro earlier (but still after January 2007), and 2% intend to do it later. Summary Report, page 9

10 Flash EB N o 95 Survey among Enterprises in Slov enia Price policy With a view to the changeover, enterprises have to establish their prices in euro. This chapter reflects how companies switched their prices to prices in euro or plan to do so, how they calculated psychological prices (such as 599 tolars) in euro, when they established or will establish their prices in euro, and until when they intend to use dual display or prices. The majority of companies do not plan further adjustments in calculating Exact application of the conversion rules psychological prices; they (without further adjustment) will change tolar to euro in accordance with the Mostly adjusting the price upwards 6 conversion rules (58%). The second highest proportion, Mostly adjusting the price downwards 3 somewhat more than onefourth of company Overall neutral approach (partly adjusting 2 6 upwards, partly downwar ds) managers, intend to use an unbiased approach, and prices will be adjusted both up and down (26%). DK / NA 8 Another 6% of company GAL LUP managers will adjust up and 3% will adjust down when changing "psychological prices" from tolar to euro. Adjustment of the psychological prices when establishing the prices in euro Q23. When you established (or whe n you will establish) your prices in euro, how did (will) you proceed for the adjustment of "psychological" prices, such as 599 tolar, which due to the application of the conversion rules would result in awkward amounts in euro? The conversion rate between the euro and the tolar was fixed on July However, the majority of the companies surveyed have already established the prices (or most prices) for their products and services in euro before this date (56%). One-fifth of the companies started providing prices in euro between July and 3 October 2006 (2%), while one-tenth did so between November and 3 December 2006 (%). Time frame for establishing the prices in euro Before the fixing of the conv ersion rate ( July 2006) Between July 2006 and 3 October 2006 Between November and 3 December 2006 GAL LUP Between and 4 January 2007 (dual circulation period) DK / NA Q24. When did you establish your prices (or the prices of the majority of your products/services) in euro or when will you do so? % of the companies surveyed intend to establish their prices in euro between January and 4 January 2007, in the dual circulation period. page 0

11 Flash EB N o 95 Survey among Enterprises in Slov enia Most enterprises do not experience any problems with the dual display of prices. The problem faced by the highest percentage of company managers (9% ) was that dual pricing was time consuming. Almost as many said it was too costly to implement (7%). Technical problems were mentioned by only 6% of the managers. An even smaller proportion (4%) stressed calculation errors by the staff, and consumer complaints (2%) as a difficulty. 3% of the managers mentioned other problems. Problems faced in relation to the dual display of prices Y e s, fa ci ng the pr oblem N o, does n ot fac e this pr oblem Too time consuming 9 80 Very costly Technical problems 6 93 Calculation errors by the staff Consumer complaints 2 96 Other problems Q25. Are you facing any of the following problems or difficulties concerning the dual display of prices? When asked if they intend to use dual display of prices beyond the period stipulated by law (ending on 30 June 2007), nearly three-quarters of the companies (70%) said they did not. 4% could not or did not want to answer this question, while 6% said that they intend to use dual display of prices beyond this date; most of them plan to do this until the end of 2007 (2% of all enterprises). Intention to continue the dual display of prices beyond 30 June 2007 No d ual disp lay beyond 30 June DK /NA 4 Dual d isplay: until end of unt il mid unt il end of b eyond do not know unt il wh at time % Q26. Do you intend to continue dual display (voluntarily) beyond the period during which it is required by law (i.e. 30 June 2007)? Q27. Until when do you intend to continue dual display (voluntarily)? Only % of company managers claimed that they would use dual display of prices until mid-2008, and even lower proportions mentioned time periods beyond this. 3% of company managers did not know how long they would continue to do so. Summary Report, page

12 Flash EB N o 95 Survey among Enterprises in Slov enia Information and information channels Trust is a key factor in communicating information: people differentiate between possible sources of information based primarily on their assessments of how trustworthy the sources are. It is therefore essential to provide information related to the adoption of the euro through channels that are widely trusted in the specific countries. As previous measurements of Flash Eurobarometer carried out among the general population have established, traditionally, national central banks are the most trustworthy sources of information regarding the euro and on issues related to a changeover followed by the European institutions. The present survey asked about the preferred distributors for information on the euro and found that 76% of Slovenian enterprises prefer the national central banks. Commercial banks come second; they are mentioned by 63% of the Slovenian enterprises as preferred distributors for information on the euro. Preferred distributors for information on the euro National Central Bank 7 6 Commercial banks 63 Governm ent, regional and local aut horities Consumers associations Trade unions, professional organisations Jou rnalists European Instit utions Ot her GALLU P Q28. Which of the following institutions are your preferred distributors for information on the euro? (several answers possible; read out) All other sources are mentioned by less than half of the enterprises surveyed. The government, regional and local authorities come in third place (27%), closely followed by consumer associations (26%). Trade unions are mentioned in fifth place (8%), followed by journalists (7%). It is not surprising that only 5% identified the European institutions as a preferred source as these are not natural sources for information on country-specific details of the changeover. 6 % of respondents preferred sources other than the previously mentioned. The level of factual knowledge about the euro is particularly high among Slovenian enterprises: the overwhelming majority of managers in Slovenia think they have received sufficient information regarding the euro and the changeover (93%). Overall, only 5% believe that they did not receive sufficient information. In this small, second group, respondents would still like to have more information about the changeover scenario (85%), about frontloading and sub-frontloading (75%), about conversion rules (70%) and about the implications of the euro for contracts and salaries (70%). See for example the Flash Eurobarometer 9. page 2

13 Flash EB N o 95 Survey among Enterprises in Slov enia Areas where more information need the Slovenian enterprises Changeov er scenario 85 Frontloading and subfrontloading Conversion rules, including rounding rules Effect of the euro on contracts, salaries etc Return of national cash to the central bank Du al disp lay of prices Design of the euro banknotes and coins Conversion rate 30 Other Q30. In which areas would you still like to receive more information? Base: only those who think they do not have sufficient information on the euro and the changeover Other topics about which still many of the Slovenian enterprises need further information are the return of national cash to the central bank (55%) and the dual display of prices (50%). Technical issues, such as the design of the euro banknotes and coins were also mentioned by 45% of those managers who said they needed further information. Almost a third of these managers mentioned that they would like more information about the conversion rate (30%) in spite of the fact that the conversion rate was fixed already on July Summary Report, page 3